(Bloomberg) —
Honda Motor Co. aims to double hybrid car sales by the end of the decade thanks to renewed demand in every major market except China, where new energy vehicles dominate.
The Japanese automaker has set a target of selling 1.3 million hybrids annually by 2030, effectively doubling the 650,000 it sold in 2023 outside China. To reach that, beginning in 2026 it plans to roll out two overhauled vehicle production platforms, along with a pair of gas-electric powertrains it says will be more efficient and more profitable.
“The goal is still to become carbon neutral by 2050, but demand for hybrids will remain high for the foreseeable future,” Katsuto Hayashi, chief officer of Honda’s automobile operations said Sunday during an event at a test track north of Tokyo. “We see most of that growth happening in North America.”
Hybrids have helped Japanese carmakers regain their competitive edge in North America, the biggest and most important market for legacy brands now that they’re struggling to hold ground in China’s booming EV market.
Read More: China’s EV Revolution Shows Grim Future for Japan Car Titans
Restrictions on harmful car emissions are set to be tightened in the US next year, and Honda said its new hybrid systems will help meet those regulations, along with similar rules being imposed in Europe, Japan and China.
Honda previously pledged that EVs and hydrogen fuel cell vehicles would account for 40% of global sales by 2030, and 100% by 2040 as part of its goal to become carbon neutral by the middle of the century.
The company said in May it plans to invest ¥10 trillion ($65 billion) through the 2031 fiscal year in the development of batteries, software and other electrification technology.
Also in May, it revealed plans to lay off full-time factory works in China, where legacy automakers are struggling to keep up with local rivals. The move is part of Honda’s effort to electrify its product lineup in the China, where it aims to introduce 10 battery EVs by 2027.
Read More: GM Is Pulling Back in the Chinese Car Market It Once Pioneered
Honda began forming a partnership this year with Nissan Motor Co. and Mitsubishi Motors Corp. to jointly develop batteries, software and other EV tech. While the alliance hasn’t been finalized, the alliance was complicated by the rapid decline of Nissan, which announced plans in November to cut thousands of jobs, slash production capacity and lower its annual profit outlook after sales fell rapidly in the US and China.
© 2025 Bloomberg L.P.
